When foreign countries buy potatoes grown in the United States,they are generating a:

Question

Quizplus · Accepted Answer

When foreign countries buy potatoes grown in the United States, they need to pay in U.S. dollars, which creates a demand for U.S. dollars. At the same time, the American potato farmers receiving payment in foreign currency will have a supply of that foreign currency. Therefore, the correct answer is B, which is a demand for U.S. dollars and a supply of a foreign currency.

When Foreign Countries Buy Potatoes Grown in the United States,they